Looking at a target price of Rs 700 in Educomp: Avinash Gorakshekar, Anagram Capital Ltd
Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about Educomp.
By 
|
| Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about Educomp.
What do you think about Educomp?
Educomp is a clear case where it is a story on the Indian youth story and typically why we like Educomp is basically we find that we expect a strong revenue in the main verticals, typically the smart class as well as the K12 segment. These are the two segments which we believe are going to grow by at least 35-40% compounded at least for the next 2-3 years.
The ICT segment is also one segment, which is more of a steady revenue earner for the company and if you look at valuations, which in case of Educomp have always been on the upper end of the curve, the stock has corrected quite moderately in the recent past and now we have a valuation roughly, which works out to about 12 times FY12 numbers.
On an EV/EBITDA basis, the stock trades at roughly about six times FY12 numbers. This is definitely a value, which one should take a call at the current price because we feel that in the next say 6-8 months, in the next 2-3 quarters, we are looking at a target price of roughly about Rs 700.
What do you think about Educomp?
Educomp is a clear case where it is a story on the Indian youth story and typically why we like Educomp is basically we find that we expect a strong revenue in the main verticals, typically the smart class as well as the K12 segment. These are the two segments which we believe are going to grow by at least 35-40% compounded at least for the next 2-3 years.
The ICT segment is also one segment, which is more of a steady revenue earner for the company and if you look at valuations, which in case of Educomp have always been on the upper end of the curve, the stock has corrected quite moderately in the recent past and now we have a valuation roughly, which works out to about 12 times FY12 numbers.
On an EV/EBITDA basis, the stock trades at roughly about six times FY12 numbers. This is definitely a value, which one should take a call at the current price because we feel that in the next say 6-8 months, in the next 2-3 quarters, we are looking at a target price of roughly about Rs 700.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
